Problem:
Manufacturing overhead is allocated to products based on the number of machine hours required. In a year when 20,000 machine hours were anticipated, costs were budgeted at $125,000.
Required:
Question: If a product requires 8,000 machine hours, how much manufacturing overhead will be allocated to this product?
A) $41,667
B) $43,750
C) $1,120
D) $50,000
Note: Provide support for rationale.